The crypto coin that started the trend is still the most popular of its kind - but even if you get the required hardware, you still have to spend a lot of money on electricity before you get a single bitcoin. Where in the world is the cheapest to cut the coin?
Bitcoin mining is a hot topic in the cryptographic money world, probably because of the rising energy costs associated with creating digital currencies. Recently, the Bitcoin miners flocked to Iceland, a country known for its moderate climate and abundant energy from its water sources
In fact, Bitcoin's energy consumption is about to exceed private consumption, experts say. According to the Bitcoin Energy Index, the global utilization of energy by all the miners is equal to the energy consumption of all Denmark, with a population of 5.7 million, followed by Bangladesh with a population of 163 million.
In an effort to reduce costs, cryptographic silver miners are crossing the planet in search of cheap energy. These virtual miners play an important role in the blockchain technology, which enables the existence of cryptographic currencies by solving complex problems of verifying transactions on the net, in exchange for which they receive Bitcoin coins.
But since the Bitcoin protocol operates on the basis of proof that the work is done - that is, it requires processing power - both energy consumption and difficulty are increased as the miners approach the maximum number of bitcoins, which is supposed to be 21 million. Currently, there are about 16.9 million Bitcoin coins. In addition, the attention received by Bitcoin's rise to $ 20,000 in December led to over-mining.
So where is the cheapest to cut Bitcoin?
According to a study by Elite Fixtures, the cost of the Bitcoin mining varies worldwide, ranging from $ 531 to $ 26,170.
The study examined the costs of maintaining a single bitcoin in 115 different countries based on their average energy rates. The study found that the US is in 41st place with $ 4,758 per bitcoin, close to Russia where Bitcoin mining costs $ 4,675, and Iceland with 4,746, which means that in these countries the Bitcoin mining pays off at a current value of $ 10,616.
At the top of the list is South Korea, where a single Bitcoin mining costs $ 26,170, and for those looking for the cheapest place to dig Bitcoin, it is recommended to go to Venezuela, where it will cost only $ 531 per bit. And what about the State of Israel? We're in a good place in the middle, with $ 6,087 for a single bitcoin.
The required hardware costs are a completely different opera: Bitcoin miners use powerful gaming video cards, as powerful computers as possible, game consoles and any other powerful and fast processor. Each product has its own price, so before you can start cutting down quickly, you'll have to part with thousands of dollars to build an effective mining system.